ARTICLES LABELLED WITH TAG report

Poland’s total retail stock stood at nearly 14 million sqm at year-end 2016. Shopping centres continue to dominate the market, accounting for 73% of the country’s stock, followed by retail warehouses (18%), retail parks (8%) and outlet centres (1%). Last year’s new supply totalled 460,600 sqm, of which more than three-fourths were delivered across shopping centres. Twenty two new retail schemes were opened in 2016: 15 shopping centres, the largest being Posnania in Poznań (99,000 sqm) and Galeria Metropolia in Gdańsk (34,000 sqm), two retail parks and five standalone retail warehouses. Extensions and redevelopments of 13 existing schemes provided 74,000 sqm of leasable space, making up 16% of the total annual supply. Cushman & Wakefield presented its latest report on Poland’s retail market.

Total commercial real estate investment across CEE (Czech Republic, Hungary, Poland, Romania and Slovakia) reached €4.4bn in Q4 2016, a 27% increase on Q4 2015. This took full year volumes for 2016 to just over €11bn, an 11% increase on 2015 (€9.9bn), bucking the wider trend across Europe and on the continent where volumes shrank year-on-year. Cushman & Wakefield Czech Republic predicts a further growth of the region. 

In 2016, total office stock in Poland’s eight key regional cities (Krakow, Wrocław, Tricity, Katowice, Poznań, Łódź, Szczecin and Lublin) rose to nearly 4 million sqm. Krakow, Wrocław and Tricity remain the largest regional office hubs. Office take-up hit nearly 590,000 sqm, which represented a 50% rise on the average for the years 2011–2015. Cushman & Wakefield presented an overview of the Polish regional office market for 2016 in its latest report.

Investors spent €1.54 billion in 2016 in the Hungarian commercial real estate market surpassing the 2015 level by 107%. Last year both office properties and retail properties were in request, thus CBRE is expecting a similar or even higher turnover for 2017.

In most Central and Eastern European countries the commercial property market is heavily concentrated in the capital city and modern offices in secondary or tertiary cities are virtually non-existent. Luckily, that is not the case in the Czech Republic, where there are cities outside of Prague, most notably Brno, that offer attractive opportunities for international companies. Czech-based developer CTP invited us for the opening ceremony of the new Courtyard by Marriott hotel and showed us the city’s property market.

In 2016, office supply in Warsaw rose by 65% on the annual average for the period 2011–2015. The largest number of new office buildings was delivered in the City Core and the Fringe. Take-up came predominantly from the business services sector. Cushman & Wakefield presented an overview of the Warsaw office market in 2016 in its latest report.

2016 reached the volume of €11.8bn in investment markets across Poland, Czech Republic, Slovakia, Hungary, Bulgaria and Romania, according to a research report by Colliers International. Aside from Poland, investment flows in 2017 will be close to or higher than 2016’s.  The retail sector might see continued rental growth and high investment levels across the region.

The sound global and domestic investment climate generated a major push in property investment activity in Hungary reaching the second highest ever registered annual volume of €1.7 billion in 2016, i.e. 133% up from the previous year. The most popular type of assets were offices with a share of 56%, followed by retail at 25%, while industrial deals accounted for 11% of the overall volume.

Search engines have become an integrated part of the daily life of people and companies as well. Not only the process of buying a book or planning a vacation has changed drastically over the last decade but companies looking for office space are also turning to the Internet more often. The latest Tea & Talk session, co-organised by RICS Hungary and VLK Cresa in Budapest, helped us understand how changes in technology will affect brokers, tenants and landlords.

In 2016, the Warsaw office market grew by 407,000 sqm of new space in 21 projects. The vacancy rate has grown by 1.9 pp on a yearly basis to 14.2 of total stock with central locations having lower occupancy rates than non-central locations. The Polish Office Research Forum has published its data on the Warsaw office market for Q4 2016.